Cann Global has issued 8.5 million shares to four companies as it conducts “detailed due diligence” on an acquisition target in Thailand.
The listed company, which has not traded on the ASX for more than 12 months, claimed the deal, if finalised, would help it become a “major international force in the cannabis industry”.
In an update to shareholders, the firm described the acquisition as a “major opportunity” – one of many it has flagged in recent months – adding it has issued exclusivity shares to four entities: Land and Sky Co, Fah Dao Co, Green Pharma Botanical (a plant-breeding business), and Biorefine.
No other details were disclosed.
“Cann Global has entered into an exclusive dealing arrangement to acquire assets in Thailand,” the firm said in a statement to the ASX. “It is the board’s view that Thailand is currently one of the best placed countries in the world to produce mass amounts of high-quality cannabis products.
“The board view the proposed acquisition opportunity as a way to enable the company to distribute cannabis products to the growing large Thailand market and subsequently into European markets and Australia.”
The exclusivity shares, which are worth a combined A$178,500 at $0.021c per share, give Cann Global a six month period to finalise the acquisition.
They will be subject to a minimum voluntary escrow of 12 months.
Cann Global has been working on potential acquisitions since entering a trading halt in September 2022. It has requested multiple extensions since, but has yet to complete any deals. One acquisition had “commercial merit” but failed to clear undisclosed regulatory hurdles.
Meanwhile, Cann Global blamed its failure to lodge financial reports to the ASX on its need to replace its auditor and on a staffing restructure.
It said it will work on meeting its ASX obligations and filing the reports “in the coming weeks”.
The company requested a further extension to its voluntary suspension to November 30.